Financial Data and Key Metrics Changes - The company produced 4.2 million pure silver ounces in Q4 and over 15 million for the year, exceeding revised guidance [8] - Revenues reached nearly $1.3 billion for the year, marking a significant financial milestone [9] - The realized silver price for Q4 was just under $59, while the average for the year was $41.52 [9] - Record cash flows were reported, attributed to increased metal prices and production [10] - The company held just under $940 million in cash, with working capital at $733 million [21] Business Line Data and Key Metrics Changes - The mint operation generated just under $23 million in revenue for Q4, with profitability of about $24 million for the year [9][19] - The exploration program included over 250 kilometers of drilling, with positive results expected to be reflected in the Annual Information Form [10][24] - The company achieved a silver purity of over 60% in Q4, continuing to improve its position as a pure silver producer [10] Market Data and Key Metrics Changes - The company noted that the silver equivalent ratio collapsed towards the end of the year, impacting production and costs [12] - The market for silver has shown volatility, affecting refineries and retail buyers, but the company remains unaffected due to its financing structure [31] Company Strategy and Development Direction - The company plans to maintain a focus on silver purity while exploring potential acquisitions to enhance its portfolio [51] - There are ongoing investments in plant expansions, particularly at Santa Elena, with a target to increase throughput [17] - The company is also targeting robust production for 2026, with guidance set for 13-14 million pure silver ounces [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong cash flow and a favorable market environment for silver prices [21][24] - The company is actively addressing a pending tax issue that has been ongoing since 2012, with hopes to resolve it in 2026 [38] - Management highlighted the importance of safe production and maintaining world-class safety metrics [18] Other Important Information - The company declared an increase in its dividend policy, doubling it from 1% to 2% of top-line revenue effective 2026 [22] - The company is focused on expanding its mint operations, which have shown rapid growth since inception [48] Q&A Session Summary Question: Any quantifiable issues related to costs or shipments this quarter? - Management noted that refineries have suspended financing, impacting retail buyers but not affecting the company directly [30][31] Question: Plans for exploration and availability of rigs? - The company confirmed that it has long-term contracts with drilling contractors, ensuring contained costs and availability of rigs [33] Question: Thoughts on cash allocation and potential returns to investors? - Management indicated that while cash is increasing, there are ongoing discussions regarding a tax issue, and they have not ruled out share buybacks [38] Question: Update on Jerritt Canyon and potential restart? - Management stated that a standalone update on Jerritt Canyon will be provided once plans are finalized, with attention now focused on this operation [52]

Financial Data and Key Metrics Changes - The company produced 4.2 million pure silver ounces in Q4 2025, totaling just over 15 million for the year, exceeding revised guidance [7][8] - Revenues reached nearly $1.3 billion for the year, marking a significant financial milestone [9] - The realized silver price for Q4 was just under $59, while the annual average was $41.52, indicating strong pricing strategies [9][10] - Record cash flows were reported, attributed to operational discipline and improved metal prices [10][22] Business Line Data and Key Metrics Changes - The mint operation generated just under $23 million in revenue for Q4, with profitability of about $24 million for the year [9][20] - The company reported a silver purity of over 60% in Q4, which is a key performance indicator [10][51] Market Data and Key Metrics Changes - The company noted a significant increase in marketable securities, rising by about $140 million for the year [21] - The company is experiencing a tight market with volatility affecting refineries, but it does not impact the company's operations as it does not finance its metal [31] Company Strategy and Development Direction - The company is targeting production of 13-14 million pure silver ounces and 110,000-130,000 ounces of gold for 2026, with a focus on maintaining a stable conversion ratio [13][14] - The integration of the Gatos asset has been successful, providing opportunities for cost reduction and resource growth [15][17] - The company plans to expand its plant capacity at Santa Elena from 3,100-3,200 tons per day to 3,500 tons per day by H2 2026 [18] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing improved metal prices and a strong cash position of just under $940 million [22][24] - The company is focused on resolving a pending tax issue that has been ongoing since 2012, with hopes of final resolution in 2026 [38] Other Important Information - The company has doubled its dividend policy effective 2026, increasing from 1% to 2% of top-line revenue [23] - The company is planning to conduct 266 kilometers of drilling across all operations, reflecting confidence in exploration success [24] Q&A Session Summary Question: Any quantifiable issues related to costs or shipments encountered this quarter? - Management noted that refineries have suspended financing, impacting smaller producers but not the company, which does not finance its metal [31] Question: How is the company thinking about cash management and potential capital returns to investors? - Management indicated that while cash is increasing, there are ongoing discussions regarding a tax issue, and they have not conducted share buybacks but have increased dividends [38] Question: Is there any update on Jerritt Canyon? - Management stated that a standalone update on Jerritt Canyon will be provided once plans and numbers are finalized, with a focus on this asset now that Gatos is integrated [53]

Financial Data and Key Metrics Changes - Targa Resources reported a record Adjusted EBITDA of $4.96 billion for 2025, which is an increase of over $800 million or 20% year-over-year [8][20][21] - The fourth quarter Adjusted EBITDA was $1.34 billion, reflecting a 5% increase from the previous quarter [19][20] - The company expects full-year Adjusted EBITDA for 2026 to be between $5.4 billion and $5.6 billion, representing an 11% increase over 2025 [22][23] Business Line Data and Key Metrics Changes - Permian volumes averaged a record 6.65 billion cubic feet per day in the fourth quarter, up 10% from the previous year [14] - NGL transportation volumes averaged a record 1.05 million barrels per day, and fractionation volumes averaged 1.14 million barrels per day [17][18] - LPG export volumes averaged 13.5 million barrels per month [18] Market Data and Key Metrics Changes - The company added approximately 350,000 dedicated acres in 2025 and completed the acquisition of Stakeholder, adding nearly 500,000 dedicated acres [15] - The outlook for natural gas prices at Waha is expected to remain volatile throughout 2026, but improved egress is seen as a long-term positive for Targa and its producers [17] Company Strategy and Development Direction - Targa plans to invest in two new projects: the Yeti Two processing plant and a thirteenth fractionator in Mont Belvieu, with additional plants planned for early 2028 [10][12] - The company aims to maintain a strong free cash flow profile post-completion of major projects like Speedway and LPG export expansion, with a focus on growing Adjusted EBITDA and dividends [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued low double-digit volume growth in the Permian for 2026 and beyond, supported by strong commercial success and existing customer relationships [9][32] - The company anticipates reaching a run rate Adjusted EBITDA of over $6 billion following the completion of Speedway, which will enable further investments in growth [12] Other Important Information - Targa's net consolidated leverage ratio was approximately 3.5 times at year-end, well within the long-term target range of 3-4 times [22] - The company repurchased $642 million of common shares in 2025 at a weighted average price of $170.45 [21] Q&A Session Summary Question: Outlook for 2026 and growth drivers - Management highlighted strong producer relationships and existing customer activity as key drivers for resilience in growth outlook for 2026 [30][31] Question: CapEx budget increase - The increase in CapEx is attributed to new plants and field capital spending to support growth, reflecting a larger base for future growth [33][34] Question: Durability of commercial success - Management indicated that strong growth is expected even without additional commercial success due to existing contracts and dedicated acreage [44][45] Question: Waha price outlook - Management expects Waha prices to remain volatile but sees long-term improvements with new pipeline capacity coming online [54][56] Question: Marketing opportunities for 2026 - Management remains conservative in forecasting marketing gains for 2026, with potential upside from market conditions [62][63] Question: Growth in the Delaware Basin - Management noted that growth in the Delaware is driven by both market share gains and overall production increases from dedicated producers [64][66] Question: Impact of technological advancements on well recovery - Management acknowledged improvements in well recovery due to technological advancements by producers, contributing positively to Targa's outlook [72][74] Question: Details on recent bolt-on acquisitions - Acquisitions were made from producers with strong relationships, aimed at enhancing Targa's asset base and operational efficiency [76]

Financial Data and Key Metrics Changes - Record full year silver and gold production increased by 57% and 23% year-over-year, respectively, with full year record EBITDA rising 200% to over $1 billion and free cash flow increasing to $666 million from -$9 million in 2024 [3][4] - Year-end cash increased more than 10 times to $554 million, and net income rose tenfold to a record $586 million [3][4] Business Line Data and Key Metrics Changes - The U.S. operations accounted for nearly 60% of 2025 revenue, with silver representing about 35% of total revenue [4] - Las Chispas generated $286 million of free cash flow in only 10.5 months of contribution, while Rochester's silver and gold production increased by 40% and 54% year-over-year, respectively [4][12] Market Data and Key Metrics Changes - Quarterly realized gold and silver prices increased by 21% and 40%, respectively, and are expected to strengthen further in 2026 [25] - The company anticipates silver to contribute approximately 42% of total 2026 revenue based on current prices and guidance midpoint [7] Company Strategy and Development Direction - The company is focused on closing the New Gold transaction, which is expected to enhance its geographic footprint and reduce cost profiles [8][9] - A record amount of capital is allocated to exploration investments in 2026, with a 47% increase compared to 2025 levels [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position, stating it is poised for another record year in 2026, driven by a full year of production at Las Chispas and improved performance at Rochester [7][28] - The company is committed to maintaining safety and environmental performance as top priorities while integrating New Gold operations [28] Other Important Information - The company achieved its goal of being net cash positive, with total debt declining by $250 million, or 42% year-over-year [25][26] - Repairs at Wharf are expected to be completed in the second quarter following damage from a fire in the mine's tertiary crusher [17][18] Q&A Session Summary Question: Reserve grades at Las Chispas - Management indicated that the grade profile reflects a more conservative modeling approach, with expectations for normalization of grades going forward [34][36] Question: Exploration results and maiden resources at East Palmarejo - All reported ounces are outside the Franco-Nevada Gold Stream area, with ongoing exploration expected to yield additional resources [40][42] Question: Cash tax guidance breakdown - Approximately 80% of the cash taxes are expected to be paid in Mexico, with some cash tax obligations in the U.S. due to limitations on tax shelters [48][49] Question: Capital returns preference - The company is considering both dividends and buybacks, with a slight preference for buybacks due to the flexibility they provide [53][54] Question: Future exploration investments in New Gold assets - Management is looking to allocate additional capital to exploration at Rainy River post-transaction closure, with a focus on regional opportunities [56][58]

Financial Data and Key Metrics Changes - The company reported record net earnings of $452 million in Q4 2025, or $1.07 per basic share, and $980 million for the full year, or $2.56 per basic share, reflecting strong execution and margin expansion from higher metal prices [3][4] - Adjusted earnings were $470 million in Q4, or $1.11 per share, and $959 million for the full year, or $2.54 per share [4] - Attributable free cash flow reached a record $553 million in Q4 and $1.2 billion for the full year [4] - Cash and short-term investments increased by $408 million from Q3, totaling $1.3 billion at year-end, or $1.4 billion including the company's 44% interest in cash at Juanicipio [4] Business Line Data and Key Metrics Changes - Attributable silver production was 22.8 million ounces in 2025, exceeding the top end of the guidance range, while attributable gold production was 742,200 ounces, within guidance [5] - Silver segment all-in sustaining costs were $9.51 per ounce in Q4 and $13.88 per ounce for the full year, below the decreased guidance [5] - Gold segment all-in sustaining costs were $1,699 per ounce in Q4 and $1,621 per ounce for the full year, within guidance [6] Market Data and Key Metrics Changes - The company expects silver production to increase to 25-27 million ounces in 2026, with all-in sustaining costs of $15.75-$18.25 per ounce [10] - For gold, the guidance is 700,000-750,000 ounces with all-in sustaining costs of $1,700-$1,850 per ounce [11] - The silver market is expected to remain in a deficit for the sixth consecutive year in 2026, supporting the company's outlook [13] Company Strategy and Development Direction - The company plans to release an updated technical report for La Colorada in Q2 2026, integrating mine plans and infrastructure with a phased approach to development [8][9] - Increased project capital is planned for La Colorada Skarn and Jacobina, with part directed towards satellite deposits [12] - The company remains unhedged on both gold and silver, focusing on margin expansion and strong cash flow generation [14] Management's Comments on Operating Environment and Future Outlook - Management highlighted the favorable metal price environment, with silver prices averaging around $58 and gold prices over $4,100 in Q4 [42] - The company anticipates strong free cash flow and high returns of capital to shareholders in 2026, alongside funding for exploration and growth projects [12][13] - Management expressed confidence in the operational strength and the potential for increased production from Juanicipio [17] Other Important Information - The company declared a dividend of $0.18 per common share, marking the third consecutive dividend increase [5] - Discussions regarding potential partners for the La Colorada Skarn project are ongoing, with a focus on the new phased approach [27] Q&A Session Summary Question: Experience with Juanicipio and sustainability of outperformance - Management reported a positive experience with Juanicipio, noting strong production and low costs, with expectations of long-term changes in metal grades [16][17] Question: Details on La Colorada Skarn phased approach - Management indicated that the phased approach will focus on higher-grade material initially, with a tonnage range of 10,000-15,000 tons for phase one [19][20] Question: Commitment to Cerro Moro and exploration in Argentina - Management expressed willingness to commit resources to Cerro Moro, highlighting positive changes in Argentina and increased capital for exploration programs [21][23] Question: Update on Escobal consultation process - Management noted ongoing engagement with the Ministry of Energy and Mines, with encouraging updates on the consultation process [28][30] Question: Juanicipio dividends and financial arrangements - Management clarified that dividends from Juanicipio are paid out of tax-paid retained earnings, with expectations for another dividend soon [36] Question: Consideration for early repayment of senior notes - Management stated that early repayment of the 2027 senior notes is a consideration, depending on market conditions and liquidity [39]

Financial Data and Key Metrics Changes - The company reported record net earnings of $452 million in Q4 2025, or $1.07 per basic share, and $980 million for the full year, or $2.56 per basic share, reflecting strong execution and margin expansion from higher metal prices [3][4] - Adjusted earnings were $470 million in Q4, or $1.11 per share, and $959 million for the full year, or $2.54 per share [4] - Attributable free cash flow reached a record $553 million in Q4 and $1.2 billion for the full year [4] - Cash and short-term investments increased by $408 million from Q3, totaling $1.3 billion at year-end, or $1.4 billion including the company's 44% interest in cash at Juanicipio [4] Business Line Data and Key Metrics Changes - Attributable silver production was 22.8 million ounces in 2025, exceeding the top end of the guidance range, while attributable gold production was 742,200 ounces, within guidance [5] - Silver segment all-in sustaining costs were $9.51 per ounce in Q4 and $13.88 per ounce for the full year, below the decreased guidance [5] - Gold segment all-in sustaining costs were $1,699 per ounce in Q4 and $1,621 per ounce for the full year, within guidance [6] Market Data and Key Metrics Changes - The company expects silver production to increase to 25-27 million ounces in 2026, with all-in sustaining costs of $15.75-$18.25 per ounce [10] - For gold, the guidance is 700,000-750,000 ounces with all-in sustaining costs of $1,700-$1,850 per ounce [11] - The silver market is expected to remain in a deficit for the sixth consecutive year in 2026, supporting the company's outlook [13] Company Strategy and Development Direction - The company plans to release an updated technical report for La Colorada in Q2 2026, integrating mine plans and infrastructure with a phased approach to development [8][9] - Increased project capital is planned for La Colorada Skarn and Jacobina, with a focus on exploration and preliminary engineering [12] - The company remains unhedged on both gold and silver, focusing on margin expansion and capital returns to shareholders [14] Management's Comments on Operating Environment and Future Outlook - Management highlighted the favorable metal price environment, which has coincided with increased silver production, driving higher free cash flow [13] - The company is optimistic about the potential for strong free cash flow and high returns of capital to shareholders in 2026 [12] - Management noted ongoing discussions with potential partners for La Colorada Skarn and emphasized the importance of the consultation process for Escobal [29][30] Other Important Information - The company declared a dividend of $0.18 per common share, marking the third consecutive dividend increase [5] - The consultation process for Escobal is ongoing, with the Guatemalan Ministry of Energy and Mines confirming compliance with court orders [10][30] Q&A Session Summary Question: Experience with Juanicipio and sustainability of outperformance - Management expressed satisfaction with Juanicipio's performance, noting strong production and low costs, while acknowledging potential long-term changes in metal grades [16][17] Question: Details on La Colorada Skarn phased approach - Management indicated that the phased approach will focus on higher-grade material initially, with a tonnage range of 10,000-15,000 tons for Phase 1 [19][20] Question: Commitment to Cerro Moro and exploration in Argentina - Management confirmed a willingness to invest in exploration at Cerro Moro, citing positive changes in Argentina and increased capital for exploration programs [22][23] Question: Progress on potential partnership for La Colorada Skarn - Discussions on potential partnerships have progressed, but specific details were not disclosed due to ongoing negotiations [27] Question: Update on Escobal consultation process - Management noted ongoing engagement with the Ministry of Energy and Mines, with encouraging updates from the government regarding the consultation process [30]

We envision. We deliver. Q4 - FY 2025 Financial and Operational Results Webcast February 19, 2026 NYSE: FSM | TSX: FVI We envision. We deliver. Q4 - FY 2025 Highlights FY 2025 record free cash flow from ongoing operations4 of $330 million Cash Flow & Margins Balance Sheet Strength Delivering Growth Production $704.0 M in liquidity $381.5 M net cash position Safety Cash Cost & AISC Record FCF from Operations1,4 $132.3 M Q3 2025: $73.4 M Operating cash flow before working capital of $147.6 M or $0.48/share2 E ...

Financial Data and Key Metrics Changes - Targa Resources reported a record Adjusted EBITDA of $4.96 billion for 2025, which is an increase of over $800 million or 20% year-over-year [6][20] - The fourth quarter Adjusted EBITDA was $1.34 billion, reflecting a 5% increase over the third quarter [19] - The company invested approximately $3.3 billion in growth capital projects in 2025, with net maintenance capital at $226 million [20][21] - The net consolidated leverage ratio at year-end was approximately 3.5 times, within the long-term target range of 3-4 times [21] Business Line Data and Key Metrics Changes - Permian volumes grew by 11% in 2025, translating to an increase of over 600 million cubic feet per day [6] - NGL transport volumes increased by almost 170,000 barrels per day, while frac volumes rose by more than 120,000 barrels per day [6] - The logistics and transportation segment saw NGL transportation volumes average a record 1.05 million barrels per day, and fractionation volumes averaged 1.14 million barrels per day [17][18] Market Data and Key Metrics Changes - The company added approximately 350,000 dedicated acres in 2025 and completed the acquisition of Stakeholder, adding nearly 500,000 dedicated acres [14] - The Delaware Express project and other expansions are expected to enhance the company's market position and operational capacity [18] Company Strategy and Development Direction - Targa Resources plans to continue investing in growth capital projects, with an estimated $4.5 billion in growth capital spending for 2026 [21][22] - The company is focused on maintaining a strong balance sheet while generating significant free cash flow, with expectations of reaching over $6 billion in Adjusted EBITDA following the completion of major projects [11][22] - The strategy emphasizes growing Adjusted EBITDA, increasing common dividends, and reducing common shares outstanding [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued low double-digit Permian volume growth for 2026 and beyond, supported by strong producer relationships and commercial success [7][32] - The outlook for 2027 and beyond has improved, with expectations of sustained higher Waha prices benefiting Targa and its producers [17][32] - Management acknowledged the potential for volatility in natural gas prices but emphasized the stability provided by fee-based contracts [22][88] Other Important Information - The company is in an elevated growth capital environment, investing in gathering, processing, and downstream infrastructure [10] - Targa is ordering long lead items for additional processing plants planned for early 2028, indicating a proactive approach to future capacity needs [9][10] Q&A Session Summary Question: Outlook for 2026 and growth drivers - Management highlighted strong producer relationships and existing customer activity as key drivers for resilience in growth outlook for 2026, with low double-digit growth expected [30][32] Question: CapEx budget increase - The increase in CapEx is attributed to new plants and additional field capital, reflecting a larger base for growth and the need for incremental spending [33][37] Question: Durability of commercial success - Management indicated that even without significant new commercial success, strong growth is expected from existing contracts and dedicated acreage [44][45] Question: Waha price exposure and marketing opportunities - Management noted that while Waha prices may be volatile, the company has significant transport positions to mitigate risks and capture marketing opportunities [86][88] Question: Impact of new technologies on well recovery - Management acknowledged improvements in well recovery due to technological advancements by producers, contributing positively to Targa's outlook [72][74] Question: Export volumes and capacity - The company remains confident in growing export volumes in tandem with new capacity coming online, supported by strong commercial commitments [108]

Financial Data and Key Metrics Changes - The company reported record net earnings of $452 million in Q4 2025, or $1.07 per basic share, and $980 million for the full year, or $2.56 per basic share, reflecting strong execution and margin expansion from higher metal prices [4][5] - Adjusted earnings were $470 million in Q4, or $1.11 per share, and $959 million for the full year, or $2.54 per share [5] - Attributable free cash flow reached a record $553 million in Q4 and $1.2 billion for the full year [5] - Cash and short-term investments increased by $408 million from Q3, totaling $1.3 billion at year-end, or $1.4 billion including the company's 44% interest in cash at Juanicipio [5] Business Line Data and Key Metrics Changes - Attributable silver production was 22.8 million ounces in 2025, exceeding the top end of the guidance range, while attributable gold production was 742,200 ounces, within guidance [6] - Silver segment all-in sustaining costs were $9.51 per ounce in Q4 and $13.88 per ounce for the full year, below the decreased guidance [6] - Gold segment all-in sustaining costs were $1,699 per ounce in Q4 and $1,621 per ounce for the full year, within guidance [7] Market Data and Key Metrics Changes - The company expects silver production to increase to 25-27 million ounces in 2026, with all-in sustaining costs of $15.75-$18.25 per ounce [10] - For gold, the guidance is 700,000-750,000 ounces with all-in sustaining costs of $1,700-$1,850 per ounce [11] Company Strategy and Development Direction - The company plans to release an updated technical report for La Colorada in Q2 2026, integrating mine plans and infrastructure with a phased approach to development [8][10] - Increased project capital is planned for La Colorada Skarn and Jacobina, with a focus on exploration and preliminary engineering [12] - The company remains unhedged on both gold and silver, focusing on margin expansion and strong cash flow generation [13][14] Management's Comments on Operating Environment and Future Outlook - Management highlighted the favorable metal price environment, with silver expected to remain in a deficit for the sixth consecutive year in 2026 [13] - The company is optimistic about strong free cash flow and high returns of capital to shareholders, while funding exploration and growth projects [12][14] - The management noted that the increase in metal prices is expected to drive superior returns, as evidenced by record earnings and cash flow in Q4 [11][14] Other Important Information - The company declared a dividend of $0.18 per common share, marking the third consecutive dividend increase [5] - Discussions regarding potential partners for the La Colorada Skarn project are ongoing, with a focus on the new phased approach [28] Q&A Session Summary Question: Experience with Juanicipio and sustainability of outperformance - Management expressed satisfaction with Juanicipio's performance, noting strong production and low costs, while acknowledging potential long-term changes in metal grades [17][18] Question: Details on La Colorada Skarn phased approach - Management indicated that the phased approach will focus on higher-grade material initially, with a tonnage range of 10,000-15,000 tons for phase one [20][21] Question: Commitment to Cerro Moro and exploration in Argentina - Management confirmed a willingness to invest in exploration at Cerro Moro, citing positive changes in Argentina and increased capital for exploration programs [22][24] Question: Update on La Colorada Skarn partnership discussions - Management stated that discussions are progressing but did not provide specific details on economic terms [28] Question: Progress on Escobal consultation process - Management noted ongoing engagement with the Ministry of Energy and Mines, with encouraging updates from the government regarding the consultation process [29][30] Question: Juanicipio dividends and financial arrangements - Management clarified that dividends from Juanicipio are paid out of tax-paid retained earnings, with expectations for another dividend soon [36] Question: Consideration of early repayment of senior notes - Management indicated that early repayment of the 2027 senior notes is a consideration, depending on market conditions and liquidity [39]

Financial Data and Key Metrics Changes - In 2025, the company achieved record revenue of $1.8 billion, a 34% increase from 2024, and record free cash flow of over $350 million [4][10] - The average realized price for gold sold in 2025 was $3,372 per ounce, with total cash costs of $1,077 per ounce and all-in sustaining costs of $1,524 per ounce, which were above annual guidance [10][12] - Operating cash flow before changes in non-cash working capital increased 27% to a record $924 million for the full year [11] Business Line Data and Key Metrics Changes - Production from the Island Gold District totaled 250,400 ounces in 2025, a 33% increase year-over-year, but slightly below the low end of revised annual guidance [15] - Young-Davidson produced 153,400 ounces for the full year, below revised guidance due to lower mining rates and grades [23] - The Mulatos District produced 141,600 ounces, in line with annual guidance, generating record quarterly mine site free cash flow of $92 million [24] Market Data and Key Metrics Changes - The company expects a 12% increase in production for 2026, driven by ramp-up at Island Gold and Young-Davidson [5] - The Island Gold District is projected to average 534,000 ounces per year post-expansion at a cost of $1,025 per ounce, significantly lower than 2025 costs [21] Company Strategy and Development Direction - The company aims to nearly double annual production to over 1 million ounces by the end of the decade, with a focus on internal funding for growth [5][9] - A 60% increase in dividends was announced, reflecting strong free cash flow and a commitment to returning value to shareholders [7][13] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in operational improvements and production growth, anticipating a significant increase in free cash flow [14][18] - The company highlighted the successful exploration program, contributing to a 32% increase in mineral reserves to 16 million ounces [26] Other Important Information - The company has eliminated half of the legacy hedges inherited from Argonaut Gold, increasing exposure to rising gold prices [13][14] - The exploration budget for 2026 has been increased to nearly $100 million, reflecting the company's commitment to growth [27] Q&A Session Summary Question: Exploration targets and mineralization styles - The exploration team is focusing on higher-grade mineralization in different lithologies, including conglomerates and syenite dikes, with potential for higher grades in the hanging wall [33][36] Question: Key deliverables for PDA project in 2026 - Key components include establishing portal entrances and preparing for commissioning of the mill complex, with construction tracking on schedule for mid-2027 [39][41] Question: Market reward for increased dividend - Management believes there is room for further dividend growth and emphasizes a balanced approach between dividends and share buybacks [42][44]